Cord-cutting has been surfacing in everyone’s news feed lately, but what makes people actually “cut the cord”? According to Fortune.com, approximately 13.5 million households do not pay for traditional forms of TV service.
According to the Video Advertising Bureau, the number of households that use streaming services has tripled since 2013. Instead of using the television as their main source of entertainment, people are shifting to more convenient entertainment options. According to Forbes, consumers have slowly but consistently shifted their attention away from traditional pay television options and instead gone the way of digital video platforms such as Netflix and Amazon. But what does that mean for the advertising industry? In 2017 TV’s share of total media ad spending in the U.S. will drop to 34.9% and is expected to fall below 30% by 2021.
Cord-cutting isn’t just occurring in the United States, it’s a phenomenon happening across the world. According to MediaPost, Total pay TV subscribers are down in 13 other countries, as well as the United States. With the technological revolution happening all around us, the transition from traditional cable television to Internet subscription services is just the beginning of a new frontier into a virtual world.